Located at the heart of the Mexican Caribbean shore, Tulum has grown from a hidden gem to a global hotspot for travellers in search of exclusive experiences. Two years ago, Forbes qualified it as “one of the best cities to live in Mexico”. At the time, it received more than 2 million visitors each year.
Tranquil white- sand beaches, crystal-clear waters, and tropical vegetation add to its historical charm. Tulum features all the qualities of a tropical paradise with an added touch of spiritual and ecological awareness, which gives it a unique charm that inspires travelers and expats to relocate.
We have created an informative guide for you which explains 5 of the reasons why Tulum takes is top spot in the Caribbean for Real Estate Investment.
Yes. Foreigners can own property in Tulum via a “fideicomiso”: a trust with a Mexican bank facilitated by a notary. The bank acts as a trustee and follows instructions from the property owner.
Via this arrangement, foreigners can have all rights to use, occupy, lease, build, improve, and sell their property. On average, it takes 60 to 90 days to complete a property purchase.
Another way of owning property in Tulum is by creating a Mexican corporation. This is recommended when investors plan to own several properties.
Schedule a call to work closely with a trusted team of lawyers and notaries who ensure that all legal processes proceed smoothly.
When purchasing pre-construction properties, land, or houses, it is common for developers to require a refundable deposit of $5,000 USD to secure the unit during the contract drafting process. Subsequently, buyers typically make a down payment of 30%, although larger down payments can often lead to more substantial discounts.
The remaining payments are typically made through negotiable payment plans that span the construction timeline, with the final 30% usually paid upon delivery of the property. These flexible payment options provide buyers with financial flexibility and the opportunity to manage their investment as the construction progresses.
When considering purchasing a property in Mexico, it's important to account for various closing costs that typically amount to around 7% of the property value. These costs encompass the acquisition tax, recordation fee, certificate of no liens, municipal appraisal, legal and closing fees, as well as public notary fees.
Additionally, property owners should budget for the annual property tax, which is generally around 0.1% of the property value. Homeowners' association (HOA) fees are also a consideration, with costs starting from $2.5 USD per square meter per month, depending on the included amenities.
Lastly, don't forget to factor in the cost of furniture and appliances. To gain a better understanding of these expenses and navigate through the details schedule a call with our real estate advisors.
When it comes to foreigners investing in Mexico, the most favorable approach for obtaining financing is often by securing a loan in their home country. In the United States, options like Home Equity Loans or Home Equity Lines of Credit (click here) can be considered. Buyers have the advantage of repaying their monthly loan payments using the rental income generated from their vacation rental property.
On the other hand, obtaining financing within Mexico typically involves interest rates ranging from 9% to 12%, in addition to applicable fees. We collaborate closely with companies that specialize in providing mortgages to expatriates looking to purchase real estate in Mexico. Schedule a call with us to determine if you qualify and explore the available financing options tailored to your needs.
Nestled in the Mexican Caribbean, Tulum is emerging as a vibrant destination for real estate investors. If you're exploring the rental market in this vibrant locale, it's important to review crucial data points. Discover key insights that can help you navigate the dynamic Tulum rental market and make informed decisions for your investment plans:
Tulum has emerged as a sought-after destination for travelers, resulting in a strong and consistent demand for Airbnb rentals. The level of demand for these rentals can vary throughout the year, with peak seasons from December to April experiencing higher demand and increased rental rates. Even during the off-peak periods, the occupancy rate remains relatively high, ensuring a steady flow of guests. With the upcoming development projects such as the Tulum Airport and the Mayan Train, the demand for Airbnb rentals is projected to witness significant growth, potentially transforming Tulum into a year-round hotspot. As a property owner, this presents an exciting opportunity to capitalize on the flourishing tourism market and maximize your rental income potential.
Tulum boasts a plentiful supply of Airbnb rentals, particularly in the condo apartment category, offering an array of studios and one-bedroom units for rent. These properties generally have a lower return on investment (ROI) but offer a more affordable entry price. However, there is a noticeable trend of apartments transitioning into mid to long-term rentals and achieving 10% to 13% annual ROI.
The segment with the highest ROI in the market is currently found in larger properties, such as houses and exclusive villas with five bedrooms or more. These properties, known for their remarkable architecture and interior design, tend to perform exceptionally well due to the picturesque and Instagrammable nature of Tulum.
Airbnb rental prices in Tulum exhibit a wide range, influenced by factors such as property type, location, and provided amenities. On average, a one-bedroom Airbnb rental in Tulum carries a price of around $100 per night. However, prices can vary significantly, spanning from $50 to $200 or more per night, depending on the specific property. For those seeking monthly rentals, commonly favored by expatriates and digital nomads, studio and one-bedroom apartments can be leased for prices starting at $1,000 USD per month, with contract durations typically ranging from 6 months to 1 year.
The demand for high-end properties remains particularly strong as tourism continues to surge. Villas in this category can be rented starting from $1,000 USD per night, with prices reaching as high as $10,000 or more, contingent on factors like property type, location, and the time of the year. With Tulum's popularity on the rise, these luxurious accommodations offer an enticing option for travelers seeking an elevated experience in this captivating destination.
The occupancy rate for Airbnb rentals in Tulum can fluctuate based on various factors, with well-managed property typically maintaining a 70% occupancy throughout the year.
In their annual report, the Ministry of Tourism Sedetur confirmed that Tulum experienced remarkable growth in 2022, with a significant increase of 67.8% in visitors compared to 2021. Notably, the Tulum Mayan Ruins witnessed the highest influx of visitors in the entire Riviera Maya, welcoming 1,356,852 visitors in 2022, representing a substantial 33.3% increase from the previous year.
The overall tourism influx in Quintana Roo reached 19,680,330 visitors, marking a substantial 45.5% increase from 2021. The composition of tourists in Tulum comprises 37.01% from the USA, 35.97% from Mexico, 6.48% from Canada, 2.91% from the United Kingdom (Reino Unido), with other markets contributing to the remaining 17.63%. These statistics highlight the significant growth and popularity of Tulum as a thriving tourist destination.
Tulum real estate agents have conducted extensive analysis and estimate that the average annual return on investment (ROI) in the area ranges between 8% and 15%. However, it's important to note that the ROI can vary based on factors such as the property's location, amenities, rental rates, and design.
At Tulum Land & Property, we go the extra mile to carefully evaluate the Tulum real estate market and handpick properties that have the potential to generate even higher returns. Our exclusive selection focuses on properties that are projected to yield a strong ROI of 10% to 20% per year. By leveraging our expertise and market insights, we strive to offer our clients exceptional investment opportunities in the thriving real estate market of Tulum
Tulum is considered a safe destination, supported by recent data that indicates a lower crime index compared to major cities in the United States, including Miami(see here).
While occasional violent incidents may occur, they are typically related to disputes between criminal groups and seldom involve foreigners or tourists. Like any popular tourist destination, it is advisable to exercise caution and adhere to general safety precautions in Tulum.
Numerous online forums provide helpful tips for first-time travelers to Mexico on how to avoid scams and theft (example here). By staying informed and taking necessary precautions, visitors can enjoy the beautiful surroundings of Tulum with peace of mind.
Schedule a call with our team of Tulum real estate advisors. We specialize in selecting properties that generate 10% to 20% net ROI per year and solid capital appreciation.
Working directly with reputable developers, we match your investment goals and help you make your dream investment a reality.
Tulum is the fastest growing destination on the Caribbean Coast. Its high occupancy and developing infrastructure makes it a unique investment opportunity.
We are experts in analyzing the market and focus on properties that generate 10% to 20% net ROI per year and solid capital appreciation.
Over the past few years, the number of condo listings in Tulum has experienced a notable upswing, particularly in the studios and one-bedroom unit categories. This surge in supply has resulted in increased competition among condo owners, leading to lower occupancy rates. However, it is important to note that condos with prime locations and attractive amenities, including pools, gyms, and private security, remain highly sought after by vacationers. These well-positioned and well-equipped condos tend to enjoy a higher demand and occupancy rates.
From an investment perspective, condos offer several advantages. Firstly, they are generally more affordable compared to houses, making them an accessible option for property owners seeking to enter the rental market. The lower upfront costs and potentially lower maintenance expenses can contribute to a more favorable return on investment. Interestingly, we are observing a new trend taking shape in the market. Many condo units, particularly those with one or two bedrooms, are transitioning from short-term rentals to mid to long-term rental arrangements. This shift is driven by the increasing demand from foreigners, expatriates, and digital nomads who are choosing to reside and work in Tulum for extended periods. These longer-term rental contracts, typically spanning six months to one year or more, provide a steady and reliable income stream for property owners while also reducing ongoing maintenance costs.
Currently, one-bedroom units in Tulum are commanding rental prices of approximately $1,500 USD per month. This rental income, combined with the lower expenses associated with long-term rentals, enables property owners to achieve a solid return on investment ranging from 10% to 15%, depending on the initial purchase price. This presents an appealing opportunity for investors looking to generate consistent and sustainable returns in the Tulum real estate market.
On the other hand, the demand for houses and large luxury villas with five bedrooms or more remains strong. These properties are sought after by vacationers who travel in groups for special occasions such as birthdays, retreats, and family gatherings. The supply for houses and large villas is relatively limited, resulting in higher demand and increased rental prices. Depending on factors like location, property features, and time of the year, houses can be rented starting from $1,000 and can go up to $10,000 or more. With an average occupancy rate of 70%, these properties offer an attractive investment opportunity, with top performers generating an annual return on investment of 20% or more.
As Tulum continues to expand, properties located in close proximity to the beach are expected to be the best performers in terms of rental demand and profitability. Additionally, luxury condos and private neighborhoods with luxury villas are being developed within walking distance of the beach, creating a new segment of exclusive living in Tulum.
Overall, when considering the rental market in Tulum, investors should evaluate factors such as property type, location, amenities, and current market trends. By understanding the evolving demands and preferences of renters, property owners can maximize their rental income and capitalize on the flourishing real estate market in this vibrant Mexican destination.
Remodeling a property in Tulum presents a fantastic opportunity to increase its value and appeal to potential buyers and renters, resulting in a significant return on investment. To embark on a successful renovation project, there are a few important considerations to keep in mind. Firstly, it is crucial to collaborate with a reputable contractor who possesses experience in constructing properties in Tulum. Their expertise will ensure that the remodeling process is executed smoothly and to a high standard.
Obtaining all necessary permits and approvals prior to commencing any work is another essential step in the remodeling journey. Adhering to local regulations and securing the appropriate documentation will help avoid unnecessary setbacks and ensure compliance with building codes. It is also important to anticipate and be prepared for unexpected challenges and delays that may arise during the renovation process. By engaging with experienced professionals and meticulously planning ahead, these obstacles can be mitigated, and the remodeling project can be a fruitful endeavor to enhance the property's value and desirability.
In Tulum, one effective approach to rehabilitating a property involves acquiring a house in a prime location with potential for expansion, such as adding more rooms. Additionally, incorporating renovation ideas that focus on enhancing the property's appeal by introducing key features, amenities, and shared spaces tailored to accommodate groups of vacationers can be particularly beneficial. Luxury villas, in particular, demonstrate high occupancy rates and excellent returns. By implementing architectural upgrades and carefully curated interior designs, the remodeled property can distinguish itself among competitors, attracting higher occupancy rates and generating substantial rental income.
If you are interested in learning more about the cost of renovations, critical factors to consider, and trustworthy developers to collaborate with, we invite you to schedule a call with our team. We have invested significant time and effort in conducting various studies on remodeling 3 or 4-bedroom houses into 5 to 7-bedroom luxury residences specifically tailored to accommodate groups. Furthermore, our team can provide valuable insights on potential properties available for rehabilitation that offer attractive deals. Embark on a successful remodeling project in Tulum and unlock the full potential of your property investment.
Investing in land and building a unique property can offer the potential for significant returns in the Tulum real estate market. As Tulum continues to expand and experience infrastructure development, buying land in strategic areas can be a rewarding investment opportunity. Three areas that are expected to have substantial growth in the coming years are Region 15, La Veleta and Holistika. These locations have gained popularity among tourists, and the development of infrastructure is being planned to support the growing population.
Aldea Zama is a well-established neighborhood in Tulum that commands higher prices for land, but it is also in high demand. This neighborhood offers a range of amenities, including shops, markets, restaurants, cafes, and bars. For those seeking land close to the beach, Selva Zama, Region 8 and Soy Tulum are the up-and-coming areas to watch. These locations provide an excellent opportunity to build a luxury property with easy access to the stunning beaches of Tulum.
Investing in land within private communities and gated neighborhoods in these emerging areas offers several advantages. Not only do you secure proximity to Tulum Beach, but there is also the potential for significant capital appreciation on these land lots. With the anticipated completion of major infrastructure projects such as the Mayan train and Tulum airport in 2024, land prices are expected to increase by around 25%, making this an opportune time to invest.
While purchasing land and holding it for a period of time before selling can yield attractive returns with a relatively low investment cost, the most substantial returns are often achieved by building a house or luxury villa. These types of properties have the potential to generate attractive annual returns through short-term rentals, taking advantage of Tulum's popularity among tourists.
Luxury properties are currently in high demand and are regarded as an excellent means to preserve and increase capital investment. By building a luxurious house or villa, investors can capitalize on the growing market and cater to the discerning needs of vacationers seeking upscale accommodations in Tulum. With careful consideration of location, design, and amenities, investing in land and constructing a luxury property can be a profitable venture in Tulum's thriving real estate market.
If you have dreams of building your own home in Tulum, there are several important factors to consider. Building a house or luxury villa offers the potential for attractive returns and the opportunity to create a unique property that aligns with your vision. One of the best ways to embark on this journey is by accessing a pre-sale with one of our trusted developer. Developers often provide pre-designed house models, complete with the land lot, offering a convenient and comprehensive "done for you" service. Construction time for these properties typically takes around one year, and payment terms can be arranged, usually starting with a 30% downpayment and the remaining balance paid during the construction process.
Alternatively, you can choose to work with a reputable architect who can help bring your vision to life within your specified budget. Collaborating with an architect allows for a more personalized approach, ensuring that your home is tailored to your preferences and requirements. From conceptualization to detailed design and project management, an architect can guide you through each step of the process, ensuring that your dream home becomes a reality.
At our company, we offer a full-service solution for building your perfect home in Tulum. We collaborate with experienced architects, builders, and designers who are dedicated to bringing your vision to life. Our team of professionals, including lawyers familiar with local regulations, ensures a smooth and hassle-free process. We understand that building a home is a significant decision, and we are here to support you every step of the way.
If you are ready to embark on the journey of building your own home in Tulum, we are here to help. Contact us today to discuss your plans and how our team can assist you in creating the home of your dreams. Together, we can navigate the intricacies of construction, design, and permitting, ensuring that your home reflects your unique style and offers the potential for long-term value and enjoyment.
Properties in Tulum, Mexico can come with a variety of amenities, depending on the specific property and its location. Some common amenities that may be included with properties in Tulum include:
- Swimming pool: Many properties in Tulum have a swimming pool, either on the property itself or as part of a shared community pool.
- Beach access: Some properties, particularly those located along the Caribbean coast, may have direct access to the beach or be within walking distance of the beach.
- Parking: Properties may come with a designated parking spot or garage, depending on the size of the property and its location.
- Outdoor space: Many properties in Tulum have outdoor space, such as a patio or balcony, where you can enjoy the warm weather and outdoor living.
- Security: Some properties may have security features, such as gated entrances or on-site security personnel, to provide added peace of mind.
- Fitness facilities: Some properties may have a gym or fitness center on the property or as part of a shared community facility.
- Community amenities: Depending on the development, properties may have access to shared amenities such as a restaurant, cinema, kids playground, spa and more.
It's important to keep in mind that not all properties in Tulum will come with all of these amenities, and the specific amenities included will vary depending on the property. It's a good idea to carefully consider which amenities are important to you when looking for a property in Tulum.
If you're considering buying real estate in Tulum, there are a few areas that stand out as particularly attractive options. Here are some of the best areas for buying real estate in Tulum:
- Tulum Beach: This area is located along the Caribbean coast and is home to some of the most beautiful beaches in Tulum. It's a popular spot for tourists and has a variety of real estate options, including luxury villas and the newest oceanview condos.
- Aldea Zama: This upscale neighborhood is located just a few minutes from the beach and is known for its high-end real estate options. It's a great place to buy a vacation home or rental property, as it's close to popular attractions and has a high demand for vacation rentals.
- Tulum Town: If you're looking for a more laid-back atmosphere, Tulum Town may be a good option. It's located inland and offers a more authentic Mexican experience, with a variety of affordable real estate options.
- La Veleta & Region 15: Located just a few minutes from Tulum Town, La Veleta is a newer development that's becoming popular with expats and vacationers. It offers a mix of affordable and luxury real estate options, as well as easy access to the beach.
No matter which area you choose, it's important to do your due diligence before buying real estate in Tulum. This includes researching the local market, working with a reputable real estate agent, and thoroughly inspecting any property you're considering. Let us be in your hand to help you find the best opportunity for you, schedule a call with our team of advisors to get started.
Mayan Train is a proposed passenger rail service that would connect cities like Cancun, Playa del Carmen and Tulum, and later on more towns of Mexico's Yucatan Peninsula. The project is currently in construction stages, and when it comes to fruition, it would be a game changer for regional travel and transportation.
The Mayan Train would start in Cancun and travel through the Yucatan Peninsula, stopping at major cities and tourist destinations along the way. It would provide a much needed boost to the region's economy, making it easier for people to travel between cities for business or pleasure. It would also help to reduce carbon emissions, as passengers would be able to choose to travel by train instead of flying or driving.
Construction is currently underway at the Tulum airport which is expected to be completed by the end of 2023. The new airport will be able to accommodate up to 1.5 million passengers per year and will feature a 5,000-foot runway.
The Tulum airport project is a joint venture between the Mexican government and a private developer. When completed, the airport will be able to handle domestic and international flights.
The new airport is part of a larger plan to improve infrastructure in the region. Once completed, the Tulum airport will be a major boost to the local economy. It is expected to create thousands of new jobs and bring in millions of dollars in tourism revenue.
There has been much speculation in recent years about whether Tulum, Mexico is experiencing a real estate bubble. However, there are also several factors that suggest that Tulum's real estate market is stable and not in danger of bursting.
One factor to consider is the strong demand for real estate in Tulum. The area has become increasingly popular with tourists in recent years, and the demand for vacation rentals in particular has remained strong. This demand has helped to drive up real estate prices in the area, but it has also created a stable market with a steady stream of potential buyers.
Another factor to consider is the diversity of the real estate market in Tulum. While the area is known for its luxury villas and beachfront condos, it also has a range of more affordable real estate options, including inland homes and smaller condos. This diversity helps to spread risk across the market and makes it less vulnerable to changes in demand or supply.
Finally, it's important to note that Tulum is a relatively small market, and it's not uncommon for real estate prices to fluctuate in smaller markets. While prices have increased in recent years, this growth has been relatively steady and not overly rapid, which is a sign of a healthy market.
Overall, while it's always important to be cautious when buying real estate, there are several factors that suggest Tulum's real estate market is stable and not in danger of a bubble. As with any real estate purchase, it's important to do your due diligence and work with a experience real estate advisor to help you find a great opportunity according to your needs and budget, you can schedule a call with our team of advisors if you're interested in getting started.
Our experienced legal consultants have successfully completed multiple property purchases with crypto currencies. Our team provides all the necessary information, including the legal process, taxes, and fees. Buyers will have to pass an AML (Anti-Money Laundering) and KYC process before proceeding with the purchase.
Our team will negotiate and agree on the sale and payment terms with the seller, based on your preferences, so that you can sign the contract that works best for you. Developers may need to exchange your crypto for fiat currency in order to complete the purchase. In that case, you will be in full control of the exchange time and rate.
Once the transaction is complete, the real estate property will be registered to your name. You can pay fully or partly with Bitcoin or any other major crypto currency.